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A Stochastic Dominance Comparison of Water-Conserving Irrigation Strategies

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  • Thomas R. Harris
  • Harry P. Mapp

Abstract

Stochastic dominance and stochastic dominance with respect to a function are used to compare water-conserving irrigation strategies in an area of declining ground water supplies. A computerized grain sorghum plant growth model using daily weather observations provides the basis for stochastic dominance comparisons. Six irrigation strategies dominate contemporary intensive irrigation practices by first-degree stochastic dominance and two additional strategies exhibit second-degree stochastic dominance over contemporary practices. Dominant strategies involve irrigating based on a 45 percent soil water criterion and eliminating early season irrigations. Some dominant strategies reduce water use by as much as 40 percent while increasing expected net returns.

Suggested Citation

  • Thomas R. Harris & Harry P. Mapp, 1986. "A Stochastic Dominance Comparison of Water-Conserving Irrigation Strategies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(2), pages 298-305.
    • Handle: RePEc:oup:ajagec:v:68:y:1986:i:2:p:298-305.
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    1. Liu, Yangxuan & Langemeier, Michael & Small, Ian & Joseph, Laura & Fry, William & Ristaino, Jean & Saville, Amanda, 2017. "A Risk Analysis of precision farming for tomato production," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 253119, Southern Agricultural Economics Association.
    2. Yangxuan Liu & Michael R. Langemeier & Ian M. Small & Laura Joseph & William E. Fry & Jean B. Ristaino & Amanda Saville & Benjamin M. Gramig & Paul V. Preckel, 2018. "A Risk Analysis of Precision Agriculture Technology to Manage Tomato Late Blight," Sustainability, MDPI, vol. 10(9), pages 1-19, August.
    3. Schaible, Glenn D. & Gollehon, Noel R. & Kramer, Mark S. & Aillery, Marcel P. & Moore, Michael R., 1995. "Economic Analysis of Selected Water Policy Options for the Pacific Northwest," Agricultural Economic Reports 308426, United States Department of Agriculture, Economic Research Service.
    4. Pablo C. Benítez & Timo Kuosmanen & Roland Olschewski & G. Cornelis van Kooten, 2006. "Conservation Payments under Risk: A Stochastic Dominance Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(1), pages 1-15.
    5. Lok, Thomas M. & Tabri, Rami V., 2021. "An improved bootstrap test for restricted stochastic dominance," Journal of Econometrics, Elsevier, vol. 224(2), pages 371-393.
    6. Lee, John G. & Lovejoy, Stephen B., 1991. "Integrated Assessment Of Environmental Effects From Agricultural Production," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 20(1), pages 1-7, April.
    7. Schaible, Glenn D. & Kim, C.S. & Whittlesey, Norman K., 1991. "Water Conservation Potential From Irrigation Technology Transitions In The Pacific Northwest," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(2), pages 1-13, December.
    8. Liu, Yangxuan & Langemeier, Michael & Small, Ian & Joseph, Laura & Fry, William, 2015. "Risk management strategies using potato precision farming technology," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205417, Agricultural and Applied Economics Association.
    9. Scott M. Swinton & Robert P. King, 1994. "The Value of Pest Information in a Dynamic Setting: The Case of Weed Control," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(1), pages 36-46.
    10. Watkins, K. Bradley & Mapp, Harry, 1992. "A Risk and Water Quality Analysis of Alternative Irrigation Technologies Under Different Irrigation Management Strategies," WAEA/ WFEA Conference Archive (1929-1995) 321394, Western Agricultural Economics Association.
    11. Featherstone, Allen M. & Osunsan, Adeyinka W. & Biere, Arlo, 1992. "A Risk Analysis of Alternative Crop and Irrigation Strategies Using Biophysical Simulations," 1992 Occasional Paper Series No. 6 197739, International Association of Agricultural Economists.
    12. Kanakasabai, Murali & Dillon, Carl R. & Skees, Jerry R., 2001. "Microeconomic Evaluation Of Farm Risk Management Decisions In Kentucky," 2001 Annual Meeting, July 8-11, 2001, Logan, Utah 36178, Western Agricultural Economics Association.
    13. Larson, James A. & Mapp, Harry P. & Verhalen, Laval M. & Banks, J. C., 1996. "Adapting a cotton model for decision analyses: a yield-response evaluation," Agricultural Systems, Elsevier, vol. 50(2), pages 145-167.
    14. Dillon, Carl R., 1999. "Production Practice Alternatives For Income And Suitable Field Day Risk Management," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 31(2), pages 1-15, August.
    15. Oriade, Caleb A. & Dillon, Carl R., 1997. "Developments in biophysical and bioeconomic simulation of agricultural systems: a review," Agricultural Economics, Blackwell, vol. 17(1), pages 45-58, October.
    16. Schuurs, Mark & Wegener, Malcolm K., 1999. "Farm Dams - Are They An Option For The Queensland Sugar Industry," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 124549, Australian Agricultural and Resource Economics Society.
    17. Spector, Yishay & Leshno, Moshe & Horin, Moshe Ben, 1996. "Stochastic dominance in an ordinal world," European Journal of Operational Research, Elsevier, vol. 93(3), pages 620-627, September.
    18. Levy, Moshe, 2009. "Almost Stochastic Dominance and stocks for the long run," European Journal of Operational Research, Elsevier, vol. 194(1), pages 250-257, April.
    19. Mapp, Harry P., 1986. "Innovations And Programming Techniques For Risk Analysis: Discussion," Regional Research Projects > 1986: S-180 Annual Meeting, March 23-26, 1986, Tampa, Florida 271994, Regional Research Projects > S-180: An Economic Analysis of Risk Management Strategies for Agricultural Production Firms.
    20. Harris, Thomas R. & Seung, Chang K. & Narayanan, Rangesan, 2001. "Targeting Economic Diversification: An Application of Target MOTAD Procedures," The Review of Regional Studies, Southern Regional Science Association, vol. 31(2), pages 197-215, Fall.
    21. Dillon, Carl R. & Shearer, Scott A. & Mueller, Thomas, 2001. "A Mixed Integer, Nonlinear Programming Model Of Innovative Variable Rate Planting Date With Polymer Seed Coatings," 2001 Annual meeting, August 5-8, Chicago, IL 20572, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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